Reduce Healthcare Costs with Employee Wellbeing
Kuehne + Nagel (K+N), headquartered in Switzerland, is a global logistics and supply chain organization with 70,000 employees widely dispersed around the world.
Beginning in 2011, K+N provided a very basic wellbeing program to their US employees. Enrollment simply required an annual physical and the completion of a health assessment questionnaire. While participation rates were between 60- 70%, K+N sought to further engage their US workforce to address a core business objective: reducing healthcare costs.
With healthcare costs rising at an average rate of 6-7% per year, K+N’s goal is to manage cost increases to be no more than 3%. Their health insurance data showed the top health risks specific to their employees; obesity, high cholesterol and hypertension. Analysis showed that K+N could save $700 per employee, per year in healthcare costs and productivity improvements if they focused on those major risk factors.
K+N had broader wellbeing goals as well. Through a formal employee survey as well as informal sensing, they received feedback that wellness is important to their employees, who believe it’s a shared responsibility with the Company. K+N routinely strive to manage employee stress and create a positive working environment. They also understood that addressing weight loss and tobacco cessation could increase employee health and wellbeing.
As the scope of their wellbeing initiative grew, K+N recognized the need for a wellbeing partner with a robust solution. In 2015, after a thorough review, Kuehne + Nagel chose to partner with Personify Health to build a culture of health for their US employees.
Solution
Engage Influencers for Success
To increase immediate enrollment and awareness for the new program, K+N understood the value of buy-in from their management team.
A well-crafted manager launch, including the distribution of step trackers to all members of the management team, raised the level of manager enthusiasm and commitment.
To continue the momentum, managers were asked to identify champions in over 50 of the nationally dispersed branches and distribution centers to act as ambassadors for the program. Comprehensive turn-key champion kits provided by Personify Health provided maximum program visibility.
K+N’s launch strategy was to reduce as many barriers as possible to get employees engaged. Key components of that strategy included supplying each participant with a tracker at enrollment, offering a generous reward program to increase participation (a benefits discount of $1,000 per year on
average), and distributing top-level communications (a letter from K+N’s president, a nationwide call and video) to support the program’s launch.
To further display the K+N commitment to the new program, it was branded the KN Fit Wellness Program. The brand proved to be very effective as employees feel that the name and logo captures the true spirit of the program.
At any sign that engagement seems to be waning, K+N activates challenges and exciting contests to reignite interest and engagement. A recent challenge included 140 teams across the organization. In addition, they find it effective to have a reward system that engages their workforce throughout the year.
“KN Fit incentivized me to take the first steps toward tracking and improving my health.”
Results
A Healthier Workforce and ROI
The success of Kuehne + Nagel’s wellbeing program exceeded their expectations – and continues to do so. KN Fit has achieved and maintained 80% enrollment.
K+N attributes a great deal of their program’s success to the newly created custom wellbeing brand and their robust champion network.
Other early indicators show impressive results. Based on Personify Health’s analytics, it quickly became clear that employee participation in KN Fit is driving a significant change in the physical activity level of K+N employees. An incredible 32% of low or inactive members have already shifted to the active and high active categories.
Internal data shows a positive indication of a true return on investment. Employees in K+N’s high-deductible, consumer- driven plan – a plan which has seen an actual decrease
in employee claims over the past year – are achieving significantly higher performance levels in the Personify Health platform than those in the other health plan option.
An unintentional positive result from partnering with Personify Health has been an improvement in how the geographically dispersed teams work together. The challenges have fostered an environment of previously unseen collaboration, cohesion and team building.
“Personify Health has brought out the best in our culture.”
Ready to take your employee wellbeing program to the next level? Talk to an expert at Personify Health to get started.